Economics Grade 12 P1 NSC November 2020 Question Paper (Eng)

Downloaded from hlayiso.com SENIOR CERTIFICATE/ NATIONAL SENIOR CERTIFICATE GRADE 12 ECON.1 ECONOMICS P1 NOVEMBER 2020 MARKS: 150 TIME: 2 hours This question paper consists of 12 pages. MORNING SESSION Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P1 2 DBE/November 2020 SC/NSC INSTRUCTIONS AND INFORMATION 1. Answer FOUR questions as follows in the ANSWER BOOK: SECTION A: COMPULSORY SECTION B: Answer TWO of the three questions. SECTION C: Answer ONE of the two questions. 2. Answer only the required number of questions. Answers in excess of the required number will NOT be marked. 3. Number the answers correctly according to the numbering system used in this question paper. 4. Read the questions carefully. 5. Start EACH question on a NEW page. 6. Leave 2–3 lines between subsections of questions. 7. Answer the questions in full sentences and ensure that the format, content and context of your responses comply with the cognitive requirements of the questions. 8. Use only black or blue ink. 9. You may use a non-programmable pocket calculator. 10. Write neatly and legibly. Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P1 3 DBE/November 2020 SC/NSC SECTION A (COMPULSORY) QUESTION 1 30 MARKS – 20 MINUTES 1.1 Various options are provided as possible answers to the following questions. Choose the answer and write only the letter (A–D) next to the question numbers (1.1.1 to 1.1.8) in the ANSWER BOOK, e.g. 1.1.9 D. 1.1.1 The difference in the value of the output at the peak and the value of the output at the trough of a business cycle is known as the … A length. B trend line. C amplitude. D real output. 1.1.2 One of the member countries of the BRICS Protocol is … A Japan. B China. C England. D Italy. 1.1.3 If the marginal propensity to consume (mpc) is 0,6 in a 2-sector model, the marginal propensity to save (mps) will be … A 4. B 6. C 9,4. D 0,4. 1.1.4 Which ONE of the following is presented in October to inform parliament of changes in the budget since February? A Main budget B Medium-term Budget Policy Statement C Medium-term Expenditure Framework D National budget 1.1.5 Long-term deposits of the domestic sector at monetary institutions are part of the … money supply. A M1 B M2 C M3 D M4 1.1.6 A supply reason for international trade is/are … A income levels. B preferences and tastes. C the size of the population. D labour resources. Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P1 4 DBE/November 2020 SC/NSC 1.1.7 An interest rate that commercial banks offer to their most valued clients is called the … rate. A prime B repo C fixed D preference 1.1.8 Which ONE of the following is classified as excise duties? A Tax on alcohol B Gun licence C Value-added tax D Personal income tax (8 x 2) (16) 1.2 Choose a description from COLUMN B that matches an item in COLUMN A. Write only the letter (A–I) next to the question numbers (1.2.1 to 1.2.8) in the ANSWER BOOK. COLUMN A COLUMN B 1.2.1 Autonomous A the owners of the factors of production . consumption in the economy 1.2.2 New economic B coordinates government actions to paradigm increase the competitiveness of South African businesses 1.2.3 Bureaucracy C focus on the acquisition of skills 1.2.4 Mass production D spending that takes place irrespective of 1.2.5 JIPSA the level of income 1.2.6 Dumping E the smoothing of business cycles using monetary and fiscal policy 1.2.7 Economic growth F ensures the supply of standardised 1.2.8 Integrated articles through an automated manufacturing mechanical process strategy G increase in a country's production capacity H official rules and regulations that can hinder service delivery I selling goods in another country at very low prices with which the local industry cannot compete (8 x 1) (8) Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P1 5 DBE/November 2020 SC/NSC 1.3 Give ONE term for each of the following descriptions. Write only the term next to the question numbers (1.3.1 to 1.3.6) in the ANSWER BOOK. Abbreviations, acronyms and examples will NOT be accepted. 1.3.1 The labour force between the ages of 15 and 65 that are willing and able to work 1.3.2 It illustrates (shows) the relationship between unemployment and inflation 1.3.3 A form of credit from the International Monetary Fund (IMF) which can be used when balance of payments difficulties are experienced 1.3.4 A penalty imposed by one or more countries on another country by restricting trade 1.3.5 Consultation between the South African Reserve Bank and banks to persuade them to act in a manner that is desirable 1.3.6 An increase in the number of people moving from rural areas to cities (6 x 1) (6) TOTAL SECTION A: 30 Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P1 6 DBE/November 2020 SC/NSC SECTION B Answer any TWO of the three questions in this section in the ANSWER BOOK. QUESTION 2: MACROECONOMICS 40 MARKS – 30 MINUTES 2.1 Answer the following questions. 2.1.1 Name any TWO sources of state revenue. . (2 x 1) (2) 2.1.2 What is the purpose of the residual item when the expenditure method is used to calculate national income? (1 x 2) (2) 2.2 Study the extract below and answer the questions that follow. PUBLIC SECTOR CHALLENGES The public sector comprises three levels of government, namely national, provincial and local government. The government programmes include the Medium-term Strategic Framework implemented from 2014–2019 as part of the National Development Plan. It consists of various focus areas such as education, health and economic growth and development. [Adapted from www.gov.za] 2.2.1 Which level of government develops policy and coordinates services across all nine provinces? (1) 2.2.2 Name ONE macroeconomic objective of the state. (1) 2.2.3 Briefly describe the term accountability. (2) 2.2.4 How will the government benefit from privatising state-owned enterprises? (2) 2.2.5 Why is the pricing policy a problem for the government in respect of the provisioning of goods and services? (2 x 2) (4) Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P1 7 DBE/November 2020 SC/NSC 2.3 Study the table below and answer the questions that follow. BALANCE OF PAYMENTS 2018 (R MILLIONS) 1. Current account 2018 Merchandise exports 1 175 547 Net gold exports 71 678 Service receipts 210 415 Income receipts 96 507 Less: Merchandise imports 1 222 944 Less: Payments for services 217 939 Less: Income payments 250 552 (A) -35 674 Balance on the current account -172 062 2. Capital Transfer Account 236 Net lending to (+) borrowing from (-) rest of world -172 726 [Adapted from SARB Quarterly Bulletin, March 2019] 2.3.1 Which item in the current account is unique to South Africa? (1) 2.3.2 Name the item (A) missing from the current account in the table above. (1) 2.3.3 Briefly describe the term Capital Transfer Account. (2) 2.3.4 Explain ONE factor that would influence demand to reduce the deficit in the balance of payments. (2) 2.3.5 Determine the value of the trade balance. Show ALL calculations. (4) 2.4 Briefly explain leading indicators and composite indicators as features underpinning forecasting of business cycles. (2 x 4) (8) 2.5 Analyse the impact of a devaluation of the rand on the economy. (8) [40] Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P1 8 DBE/November 2020 SC/NSC QUESTION 3: ECONOMIC PURSUITS 40 MARKS – 30 MINUTES 3.1 Answer the following questions. 3.1.1 Name TWO indicators related to foreign trade. (2 x 1) (2) 3.1.2 What is the purpose of the Expanded Public Works Programme? (1 x 2) (2) 3.2 Study the table below and answer the questions that follow. ECONOMIC INDICATORS 2016 2017 2018 Population (m.) 55,2 56,7 57,7 GDP @ constant prices (Rm.) 3 076 465 3 119 984 3 144 539 Real GDP per capita 55 914 55 930 55 595 Real GDP growth (%) 2,0 0,7 1,5 Unemployment (%) 25,6 26,1 27,6 Inflation (%) 5,3 4,6 4,4 Average exchange rate 15,02 15,64 16,20 (ZAR : US$) [Adapted from StatsSA & SARB Quarterly Bulletin, Dec. 2019] 3.2.1 Identify the economic indicator that reflects the average earnings of each person in the country. (1) 3.2.2 Name ONE international institution that requires South Africa to standardise their economic indicators. (1) 3.2.3 Briefly describe the term real gross domestic product. (2) 3.2.4 How is the unemployment rate determined in the country? (2) 3.2.5 Why is it necessary for South Africa to standardise its economic indicators according to international requirements? (2 x 2) (4) Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P1 9 DBE/November 2020 SC/NSC 3.3 Study the extract below and answer the questions that follow. FOCUS ON SPECIAL ECONOMIC ZONES The new Special Economic Zone Programme originated from developments in the national economic policies and strategies, such as the National Industry Policy Framework. The SEZ policy helped to address challenges with the current industrial development zones, which formed part of the Spatial Development Initiatives. The Foreign Investment Grant and Critical Infrastructure Programme are some of the financial incentives that promote regional development. [Adapted from Business Report, 2019] 3.3.1 Give ONE example of a spatial development initiative in South Africa that is NOT mentioned above. (1) 3.3.2 Which government department is responsible for industrial development in South Africa? (1) 3.3.3 Briefly describe the term industrial development zone. (2) 3.3.4 How does the Foreign Investment Grant help to promote regional industrial development? (2) 3.3.5 Why is the new Special Economic Zone Programme regarded as an improvement of the current industrial development zones? (2 x 2) (4) 3.4 Briefly explain population growth and life expectancy as characteristics of demographics as social indicator. (2 x 4) (8) 3.5 Evaluate the success of Broad-Based Black Economic Empowerment (BBBEE) in the South African economy. (8) [40] Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P1 10 DBE/November 2020 SC/NSC QUESTION 4: MACROECONOMICS AND ECONOMIC PURSUITS 40 MARKS – 30 MINUTES 4.1 Answer the following questions. 4.1.1 Name any TWO forms of economic integration. (2 x 1) (2) 4.1.2 What is the focus of the National Research and Development Strategy? (1 x 2) (2) 4.2 Study the information below and answer the questions that follow. BUSINESS CYCLES A B C Climatic conditions Demand-and-supply-side Consumer changing resulting in droughts policies spending patterns and floods 4.2.1 Identify the exogenous reason for business cycles in the information above. (1) 4.2.2 Name any ONE type of business cycle. (1) 4.2.3 Briefly describe the term business cycle. (2) 4.2.4 Why does the endogenous school of thought encourage government intervention in the economy? (2) 4.2.5 How can the Reserve Bank use a demand-side policy to dampen (contract) the economy? (2 x 2) (4) Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P1 11 DBE/November 2020 SC/NSC 4.3 Study the cartoon below and answer the questions that follow. [Source: Google images] 4.3.1 Which international organisation encourages free trade? (1) 4.3.2 Name the term that relates to the worldwide integration of economies through trade. (1) 4.3.3 Briefly describe the term protectionism. (2) 4.3.4 Explain the impact of protection on the value of the rand. (2) 4.3.5 How would consumers benefit from a policy of free trade? (2 x 2) (4) 4.4 Briefly explain good governance and investment in social capital as benchmark criteria for regional development. (2 x 4) (8) 4.5 Evaluate the success of import substitution as a South African trade policy. (8) [40] TOTAL SECTION B: 80 Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P1 12 DBE/November 2020 SC/NSC SECTION C Answer any ONE of the two questions in this section in the ANSWER BOOK. Your answer will be assessed as follows: MARK STRUCTURE OF ESSAY ALLOCATION Introduction The introduction is a lower-order response. Max. 2  A good starting point would be to define the main concept related to the question topic.  Do NOT include any part of the question in your introduction.  Do NOT repeat any part of the introduction in the body.  Avoid mentioning in the introduction what you are going to discuss in the body. Body Main part: Discuss in detail/In-depth discussion/Examine/Critically discuss/ Max. 26 Compare/Evaluate/Distinguish/Differentiate/Explain/Assess/Debate/Draw a graph and explain/Use the graph given and explain/Complete the given graph Max. 10 Additional part: Give own opinion/Critically discuss/Evaluate/Critically evaluate/ Deduce/Compare/ Distinguish/Interpret/Briefly debate/How/Suggest/Analyse Conclusion Any higher-order conclusion should include: Max. 2  A brief summary of what has been discussed without repeating facts already mentioned  Any opinion or value judgment on the facts discussed  Additional support information to strengthen the discussion/analysis  A contradictory viewpoint with motivation, if required  Recommendations TOTAL 40 QUESTION 5: MACROECONOMICS 40 MARKS – 40 MINUTES  Discuss the role of markets in the circular flow. (26 marks)  How can the business sector contribute more positively to the economy? (10 marks) [40] QUESTION 6: ECONOMIC PURSUITS 40 MARKS – 40 MINUTES  Discuss, without graphs, the supply-side policy to promote economic growth. (26 marks)  Why should government focus more on small, medium and micro-enterprises (SMMEs) to drive the economy? (10 marks) [40] TOTAL SECTION C: 40 GRAND TOTAL: 150 Copyright reserved